NPER - don't understand example

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Guest

I'm trying to calculate the number of $150 per month repayments needed to pay
off a $5020 debt with a fixed interest rate (27.5%). The NPER formula is
giving me an answer of 24, however 24 payments of $150 only equals $3600, not
$5020 plus interest. Why am I getting this illogical result?
 
You need to divide the 27.5% by 12 (months in the year).
This will give you 62.3 payments

Steve Hubbard
 
I'm trying to calculate the number of $150 per month repayments needed to pay
off a $5020 debt with a fixed interest rate (27.5%). The NPER formula is
giving me an answer of 24, however 24 payments of $150 only equals $3600, not
$5020 plus interest. Why am I getting this illogical result?
Click to expand...

Most likely you are entering your data incorrectly. But since you did not post
your formula, one can only surmise.

Using your information, I obtain an answer of 64.2809... monthly payments.


--ron
 
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